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Strategic Alignment: A Framework for Strategic Information Technology Management

John C. Henderson · N. Venkat Venkatraman

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Information Technology Governance and Strategy Information Systems Education and Curriculum Development Information Systems Theories and Implementation

Abstract

This paper develops a framework for strategic information technology management, termed the Strategic Alignment Model.This model is defined in terms of four domains --Business Strategy, Information Technology Strategy, Organizational Infrastructure and Processes, and Information Systems Infrastructure and Processes --each with their constituent components.This model is developed using two fundamental dimensionsstrategic integration and functional integrationand the cross-domain alignment across the two dimensions, A theoretical perspective of strategic alignment is developed using four concepts - (1) consistency in cross-domain analysis, (2) completeness of the analysis, (3) validity of the process, and (4) comprehensiveness of the process.These concepts are used to develop a set of research propositions with important implications for the management of strategic I/S planning processes.* By one estimate, as much as 50% of the neu; capital investments are I/T related.2-systems function must parallel that of the strategic management of the enterprise.As such, effective management of LT will require alignment among a complex set of choices reflecting both a strategic and a functional perspective.This paper develops the concept of alignment and presents a model for I/T management that is consistent with evolving concepts of strategic management and also addresses the functiona^ complexities of I/T management.The Strategic Alignment Model is developed using two fundamental dimensions -(1) strategic integration, which builds upon strategic management research relating to the integration of strategy formulation and implementation; and (2) functional integration, which builds upon a tradition of information systems research that focuses on the integration of I/T management with the management of other line and functional areas.These two dimensions define four strategic choice domains (Business Strategy, Information Technology

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1968Organization and Environment: Managing Differentiation and Integration.2015Strategic human resource management 1987A framework for information systems architecture 1978Strategic Planning for Management Information Systems 1981TOWARD A NEW CONTINGENCY APPROACH: THE SEARCH FOR ORGANIZATIONAL GESTALTS 1982Challenging Strategic Planning Assumptions -- Theory, Cases and Techniques 1984Strategic Management: An Integrative Perspective 1984Implications of Changes in Information Technology for Corporate Strategy

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2023Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective 2015Exploring Organizational Alignment-Employee Engagement Linkages and Impact on Individual Performance 2003Beyond Alignment: A Coevolutionary View of the Information Systems Strategy Process 2008An Integrative Model Linking IT-Business Strategic Alignment and Firm Performance: The Mediating Role of Pursuing Innovation and Knowledge Management Strategies 2013

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